Personal finance has always been important, but that inherent importance varies from person to person and generation to generation. While one person may have been taught to save 10 percent of their check, another may save none, unless its surplus.
However, personal finance is one of the best self-help items to avoiding sudden hardships.
Personal finance can be daunting to people who have little experience with finance or mathematics. It doesn’t help when banks throw topics at their clients ranging from compounding interest, withdrawal periods, interest rates or annual percentage yield, among others.
Bank of America’s Deposit Agreement and Disclosures agreement is a mere 70 pages long. No problem, right?
Austin O’Neill | Argonaut
Thankfully, there are resources available to make financial problems easier. Those resources are anything from an accountant to a financial officer at your bank and even online tutorials. But, even with these different resources to help, it can still be a difficult task. Even so, it hasn’t been a large problem people previously with other generations.
Millennials, on the other hand, are finding finances more difficult than past generations.
Millennials are stereotypically labeled for being lazy, narcissistic or apathetic. But, I often see millennials as trendsetters — especially with their finances. That trend, however, can be seen as both good and bad.
According to a CNBC article, 46 percent of young millennials, ages 18 to 24, have zero dollars saved, while 67 percent have less than a thousand dollars saved. Meanwhile, only 33 percent of “young millennials,” have more than $1,000 saved.
This may not seem like cause for concern when many young millennials have a more laidback lifestyle. If you want to make six figures and you’re 21 now, general financing says you should have roughly six figures saved up by the time your thirty. I know. That sounds terrifying. However, it doesn’t have to be that way.
According to a Business Insider article and Ramit Sethi, its simple to start with your employer’s 401(k). After starting the 401(k) the next step is to start an IRA. IRA’s have different rates, and levels.
The next step is to simply start. If a fund isn’t first created, it can’t grow.
Beyond starting, goals should be met and held up. It is an awesome feeling to hit the first milestone, but saving doesn’t work if you buy an expensive toy or spend it on a luxurious trip to reward yourself. Saving must be fairly constant. This is the best way to prepare for being an adult and entering the real world where, you may experience hardships without anyone to help.
Still feeling worried? There are many student resources all around us. Some are even free. If you are a student at the University of Idaho you can use the Better Education About Money for Students Program (BEAMS) with the University of Idaho. You can set up a group presentation or a confidential appointment with a personal finance coach. Beyond the resources that are already offered, you can purchase video segments. A personal favorite is Dave Ramsey’s “Financial Peace University.” There are many avenues to help with finances, you just need to pick the right one for you.
Austin O’Neill can be reached at [email protected]